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2. The present method of fronding for renewals of rolling stock by HIL, Roy & Colony is as follows:
Rery sets aside as a
purely paper
credit the % shown in para 2
against the reserve
debită
thus made again
drot
haper entry only the cost of replacements
Colony takes net neverve of Ray, before
revenue
antiral
deliting depreciation, & fays for replacement's out of a special expenditure subhead of Rary Vole.
revenue
Ray accumulated (defunt & 31. 12. 36
$7,930,870
20
W
that it cannot be said that
Colony holds any free hary funds; the as int
on
this deficit, Pery sets up
the balance of the
is not charged paper credit for interest on
a
defreciation reserve
ale against the paper
delit for interest on
special entendition.
3.
Goo
be
کا
now proposes to back the paper Reserve by a fund of liquid essets, & b increase the fund ba total adequate If the expired life fall the wasting words.
This is a most forudent step.
4.
The provision for
showed cours
renewals in addition to
rolling stock, all hildings, track, bridges
& auch Grant sabit krie, darunt
culverts, plant & machinery
The
anoint the
allowed to the estimated cost of replacement
ocke
asset divided by
its estimated working
life (assuming a flatrate basis is adopted, to
لعبرية
that interest is not credited to the pend). The